Western Union has been contemplating a dive into the crypto world for some time, and it’s just partnered up with Coins.ph to finally take the plunge. Last Year, Western Union admitted that users won’t be able to receive crypto payments any time soon, and while that still remains true the company has found a work around. Instead, Western Union customers will be able to send funds to a Coins.ph customer’s wallet instead which will then be automatically converted into a cryptocurrency of choice upon receipt.
The Perfect Partnership
In many ways, this new partnership makes total sense. A lot of Western Union’s customers are located in South East Asia and receive frequent payments from overseas relatives. Family members living and working abroad often send money back home to help support their families, so by cutting the cost to do so, Wester Union is likely to attract a whole wave of new customers. Union Bank of Philippines has already installed two crypto ATMs in its branches, clearly showing that the crypto demand is already there in the Philippines.
Western Union Teaming up with Ripple
Aside from this groundbreaking deal with Coins.ph, Western Union has also inked a deal with Ripple for a cross border payment system. In December 2018, Western Union announced that it was teaming up with Ripple to join the xCurrent network to process international money transfers – just like other banks have done. The use of xCurrent allows Western Union to make cross-border payments that cost a fraction of the price, helping it to stay competitive at a time when cryptocurrencies seek to edge out the fiat remittance market.
Could WhatsApp Get in the Way?
As crypto wallet apps become easier to use and get hold of, traditional money remittance services like Western Union start to see a dip in demand. WhatsApp is currently working on its own crypto wallet, and when it goes live everyone who uses the app will be able to store Bitcoin and Ethereum – as well as sending the cryptocurrencies to contacts. This could put a serious dent in Western Union’s plan, especially if more stores around the world start accepting cryptocurrencies.
Western Union is finally joining the crypto game, but it could be too late for the remittance provider. Cryptocurrencies are becoming globally accepted, and with their lower fees and superior transaction time more people are opting for crypto transfers over fiat.
